JAMAICA EXPORT FREE ZONES 1

THE JAMAICA EXPORT FREE ZONES ACT

ARRANGEMENT OF SECTIONS

Preliminary

1. Short title.
2. Interpretation

Adininistrdion

2A. Establishment of Jamaica Free Zone Chncil.
2B. Functions and powem uf the Council.
2C. Ministerial directions.

3. Establishment of the Free Zones.
4. Management and superiniendence of Free Zones.
5 . Power to prescribe Free Zone aotivities.

Responsibiliries and fullclions of Authority

6. Fmctiuns of the Authority.
7. Ministerial direclions.
8. Transfer of property.
9. Funds and resources relaied to Free Zones.

10. Borrowing powers.
11. Power of Minister to guarantee loans to the Authority.
12. Repayment of, and interest on, advances and sums issued to

13. Power to invest funds.
14. Accouslts and audit.
IS. Annual reports.
16. Staff.
17. Power to delegate
18. Protection of members

meet guarantee.

Regulations
19. Regulations.

W e i n O l U S h of this page i6 aulhorizod by L.N. %/1998]

2 JAMAICA EXPORT FREE ZONES

Operations wirhin the Free Zone

20. Approval of enterprise to undertake approve3 activity.
21. Companies to be incorpirated or registered l d Y .
22. Insurance business.
23. Dealing with. or disposal of, goods in Free ZoneS.
24. Persons not to enter Free Zones without permission.
25. Retail trade.
26. Probibition w consumptiun or use of dutiable gwdn in PICC

27. Special provisions relating to articles imported with cDItom8

28. Restriction upon disposal of articles imported with customs duty

29. Manufacture or manipulation in Free Zone.
30. Allowances for Jamaican labour or materials.
31. Disposal of goods abandoned in Free Zone.
32. Goods not to be taken into or stored in Free h e .

Zones.

duty concessions.

concessions.

Licences

33. Import and export licensing.

Banking and foreign currency activities

34. Banking activities.
35. [Repealed by Act 24 of 1996.1

36. [Repealed by Act 24 of 1994.1

37. [Repealed by Act 24 of 1996.1
38. Income tax relief in relation tu manufacturing actidtics
39. Income tax relief in relation to international trading activities.
40. Service charge and dividends s,ubjem to withholding tax.
41. Approved enterprises to submit returns.
42. Commissioner of Income Tax may issue certificatu rcgardinB

bene6ts.

43. Work permits.

v h e induim of this page is authorized by LN. %/I9981

JAMAICA E.XI'OR I' FEE€ ZONES

44. Penalty for nifences not otherwise provided for.
45. Offences by bodies of persons and by servants and agents.
46. Penalties.

SCHEDULES.

2.01

whe in0l-n of lhis p g e is authorize3 by L.N. 96/ 19981

JAMAICA EXPORT FREE ZONES 3

A d
IS ot LDPL
12 of 198s

[ 17th December, 19821 kh.,
16 of 1991

S. 64,
24 of 19%.

THE JAMAICA EXPORT FREE ZONES ACT

Preliminary

1. This Act may be cited as the Jamaica Export Free Shorttitle.
Zones Act.

2 . 4 1 ) I n this Act, unless the context otherwise requirese :rG,rpma-
?4/19%

“approved enterprise” means any enterprise approved-. ~ s. ua).
(a) by a Promoter; or
(h) if the enterprise is a Prumoter, by the

Council,
to carry on an approved activity;

“approved activity” means any activity which may be
carried on in any Free Zone in accordance with
the First Schedule; First

Srhcdule.
“the Authority” means the Port Authority established

under the Port Authority Act;

“the Chairman” means the Chaimnan of the Council 24/1996
or any person for the time being performing the ’. ’(‘).
functions of the Chairman;

“Council” means the Jamaica Free Zone Council can- =/I996
stituted under section 2A;

customs territory” means Jamaica and the territorial
waters thereof but excluding any Free Zone;

“Free Zone” means an Export Free Zone area desipn-
ated as such by or pursuant to this Act;

S. Xb).

I‘

[7hcinclusioonf~s pagekauthrizcd b1.L.N. 96/1995]

4 JAMAICA EXPORT FREE ZONES

“Free Zone Promoter“ or “Promoter” means-
(a) any person who is licensed by the Council to

promote, develop or operate any area of land
or n building or part ot‘ a building as a Free
Zone pursuant to this Act; and

(b) \he Port Authority;
“functions” includes duties and powers;
“manufacture” with its grammatical variations and

cognate expressions, means the application of any
operation or process of converting materials into
a new product or article, excluding any operation
or process which consists only of one or more of
the followhig-

.(a) packing, wherever the packing materials
may have been manufactured or produced;

(b) dividing into lots;

(c) sorting or grading;

(d marking; or

(e) packing into sets;

“member” means a member of the Council;
“Port Authority Free Zone” means-

(a ) the Kingston Export Free Zone;

( h ) the Montego Bay Export Free Zone;

(c) any other area declared a Free Zone and
vested in the Authority in its capacity as a
Free Zone Promoter under this Act.

12) This Act shall be regarded as an enactment relat-
ing to the Customs for the purposes of the Customs Act.

-.-
Cheinclusiooofnbis pageiisauthorizcdby~:~.%1199a1

2411996
S. Xb).

2411996
s. 2 m .
24/1996
s. 24%).

IAMAIC',? EXPORT FREE ZONES 5

Ad1 ninistrufinn

2 A . 4 1 ) There is hereby established for the purposes of ~~~~~-

Free Zone

2411996 s. 3.

this Aot a body to be called the Jamaica Free Zone Council J m a h
which shall be a body corporate to which the provisions of &"oil.

(2) The provisions of the Fifth Schedule shall have
effect as to the constitution of the Council and otherwise
in relation thereto.

section 28 of the Interpretation Act shalt apply.

2B.41) The Council shall have the following function-- Ly=
(a) to make, ei.ther on its own initiative or on the &$&,,

application of any person, recommendations to the 24/1996
Minister in relation to the declaration or operation,
of a n y area as a Free Zone;

(b) to receive and approve or reject--

s. 3.

(i) applications from any person for a licence
to promote, develop or operate an area of
land, a building or part of a building, as a
Free Zone; and

( i i ) applications from a Pionloter to ge ra t e as
an approved enterprise pursuant to section
4 (3);

(c) to facilitate. monitor and supervise the activities
of Free Zonc Promoters and approved enterprises;

Id) to formulate and. fro,m time to timc. review and
evaluate policies, procedures xid guidelines for the
development, management, promotion and expan-
sion of Free Zones;

(e) to promote harmonious relations between-
(i) Free Zone Proniotcrs arid appro.ied enter-

prises; and
~~

~ioolusioonflmis'~gaisauthori~ byL.N. 96/1998]

6 JAMAICA EXPORT FREE ZONES

(ii) approved enterprises and the Customs
Department and any other entity whose
activities are closely related to the opera-
tions of Free Zones.

(2) The Council shall have power-
(a) to impose and collect fees and other charges in

respect of its activities;
( b ) 'to require Promoters to furnish reports to the

Council at such times and including such parti-
culars as may be prescribed;

(c) to do all such things as may appear to it to be
necessary for the carrying out of its functions under
this Act;

(d) to institute measures to enforce the provisions of
this Act.

Mnistaid
x/iw

2C.--41) The Minister may, after consultation with the
Chairman of the Council give to the Council directions of a
general character as to the policy to be followed by the
Council in the exercise and performance of its functions.

(2) The Council shall furnigh the Minister with such
returns. accounts and other information, as he may require
with respect to the property and activities of the Council,
and shall afford him fadities for verifying such information
in such manner and at such times as he may reasonably
require.

dircctima.

s. 3.

Establish-
ment 01
P m
Zanm.
24i1996
6 *a).

3 - 4 1 } The Minister may from time to time, on the
recommendation of the Council, by order, designate such
areas as he thinks fit .to be Export Free Zones.

(2) Every order made pursuant to subsection (1) shall
specify the limits of the area designated a Free Zone, and
ascribe a name to that Free Zones.

m e inclusion of this ~aec isR ~ M Z C ~ by L N . %/ 19981

JAMAICA EXPORT FREE ZONES I

(3) On the recommendation of the Council, the S ?4/1996 Qb).
Minister may from time to time, by order, amend, vary or
add to the limits of a Free Zone or change the name of a
Free Zone, so, however, that a t any time when such an
order is made it shall not prejudice approved enterprises
existing at that time.

until other provision is made pursuant to subsection (3), be
a Free Zonz and shall be known as the Kingston Export
Free Zone.

(4) The area specified in the Second Scheduk shall, EJe,

Responsibilities and functions of Promoters
MnnQ*un+
and SUptM-
D c n d m of

2411996
s , ~ ,

4-41] Each Free Zone Promoter shall-
(a) manage. control and superintend each Frze Zone ~ r ~ ~ ~ .

in respect of which he is a Free Zone Promoter;
(b) subject to any restrictions which may be imposed

by the Commissioner of Customs under the
Customs Act, have authority over all goods
deposited or manufactured there: and

k ) supervise, conlrol and stipulaie conditions for the
movement of persons, conveyances, vessels and
goods into, in, and out of, any such Free Zone.

(a) notwithstanding anything contained in the Rent
Restriction Act, freely stipulate the prices for
leasing or selling space to be occupied by approved
enterprises established in the Free Zone under his
control;

(b) set the prices for services offered by him such as
garbage removal, customs processing, security and
any other servica related to the Free Zones under
his control.

(2) A Promoter may-

~ ~ ~ ~ _ _ ~ _ _ ~
mo incluskm of Ibh gage isaubnzcd by LJN. %/I9981

8 JAMAICA EXPOR7 F R E E ZOh'ES

( 3 ) Where n Promoter proposes. himself, to carry on
an approved activity in it Free Zone he shdl apply to the
Council for approval as ail approved enterprise and such
approval may be griintcd on such ternis as the Couilcil
thinks fit.

Power to 5.-(1) Subject to subsection 12): the activities specified
prcmi'bc in the First Schedule shsil be approved activities for the
Free Zone
aaivtivitk. purposes of this Act.
2411996
S. First l(a)(b). ( 2 ) Tlie Minister. o n the reconmendation of the
Sfhedde. Council, may from time to time. prescribe the activities

which may be carried on in a I:rec Zone znd for this purpose
may. by order. amend the First Schedule.

Responsibilities mid f irncrions of Aurhoriry
Functions 6.-(1) In this section refereilce to a Free Zone is :i
Autharily.
of the

24119%
S. ~(WJ).

reference to a Port Authority Free Zone.

(2) The Authority, in addition to a n y function o r
obligrtion imposed on i t uiider any other enactment for
the time being in force, shall-

(a) administer, control, operate and manage all Free
Zones and any other property which may from
time to time be vested in i t under this AcS

(b) provide and maintain such services, facilities and
structures as are in its opinion necessary or desir-
able for the efficient operation of any Free Zone;

(U) permit customs offices to be established in any Free
Zone and shall proiide facilities for this purpose;

(d) provide adequate fencing and enclosures to segre-
gate a Free Zone from the customs territory;

(e) approve and regulate activities which may be
carried on in a Free Zone.

c__ ~~ - . ~-
[The inclusion of &is plge is authorixd by LJN. %I 199~71

J A M A ~ C A n r o w F R E E ZONES

(3) In the exercise of its functions under this Act. the

(U) construct and maintain warehouses, factories, com-
mercial buildings, offices, freight-sheds, docking
facilities, luxling and unloading berths, landings
for loading and unloading operations, storage
facilities or workshops, ports, piers, shipyards, or
other structures for the use of itself or other
persons and may grant contracts or concessions
to other persons for the construclion or provision
of any of the said facilities;

(b) sell, rent, grant leases, sub-leases or other interests
or concessions in respect of land, buildings or any
other facility or structure within a Free Zone
owned by, or under control of, the Authority on
such terms and conditions and subject to the pay-
ment of such price, rental or other cunsideration
as the Authority may think fit;

(c) subject to thc provisioiis of section 21, approve,
on such terms and conditions as the Authority
thinks fit. persons to carry on approved activities;

(d) import, store, exhibit, pack, unixck, re-pack, manu-
facture, assemble, refine, purify, mix, transform,
operate, re-ship (whether by sea or air), and mani-
pulate all kinds of merchandise, products, raw
materials, containers and other commercial goods
other than those goods which are prohibited for
importation, storage, or manufacture in a Free
Zone;

(e) authorize persons, whether national or foreign,
resident or non-resident, to carry out the opera-
tions, activities or negotiations specified in para-
graphs (a) and Id);
provide water, light and power, telecommunications
and any other public utilities or services and enter

Authority may-

(f)

~~.~
m~indu*rooffhiaplgsiaauumrizodbyL.~. 9611w81

9

10 JAMAIC'A EXPORT I:REE ZONES

into contracts for the supplying of the said utilities
and services;

(g) develop industrial areas for the manufacture, pro-
cessing, finishing, re-pncking and tram-shipment
of products;

(h) subject 10 the provisions of section 21, with the
approval of the Minister enter into joint ventures
with any person for the purpose of any approved
activity;

( i ) carry on or permit to be carried on such other
activities as appear to i t necessary, advantageous
or desirable for or in connection with the exercise
and performance of its functions or the operation
of a Free Zone.

7. The Minister may, after consultation with the Chair-
man of the Authority, give to the Authority directions of a
general character as to the policy to be fol,lowed by the
Authority in the exercise and performance of its functions
in relalion to a Port Authority Free Zone.

8 .41 ) The Minister may, by order, transfer to the
Authority, any property belonging to the Government which
appears to him to be necessary or useful to the Authority
in carrying out its functions under this Act, and such pro-
perty shall vest in the Authori,ty by virtue of the order and
without further assurance.

(2) An order made pursuant to subsection (1) shall-
(a) specify the amount of compensation (if any), pay-

able to the Government in relation to property so
transferred and the manner in which such com-
pensalion shall be paid;

(b) contain such incidental, consequential or supple-
mentary provisions as the Minister may think
necessary or expedient for the purposes of the
order.

~~~ ---- ~~ - . ~~ ~
h C h i W l d #MS Paos iS aUbk&td by L.N. 961 19981

24119% s. 7m.
diredous.
24/19!X s. N:,Kb).

Mioisteri:il

Transfer
of pro?xrly.

JAMAICA EXPORT FREE ZONES 11

(3) All property vested in the Authority under this
Act shall be exempt from property tax, sewerage rates and
a11 rates imposed under the provisions of Part VII of the
Kingston and St. Andrew Corporation Act, or of the Paro-
chial Rates and Finance Act.

9.-(1) The funds and resources of the Authority in z2:;;;d
relation to the operations of the Port Authority Free Zone related to
(hereinafter referred to as the funds of the Port Authority ;%